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OneBeltandOneRoad,1,“OneBeltandOneRoad”,“OneBeltandOneRoadshortforSilkRoadEconomicBeltand21stCenturyMaritimeSilkRoad,2,Essence,OBORisnotanentityandthemechanism,itisaeconomiccooperationconcept,andbelongstothemultinationaleconomicbelt.OBORisadevelopmentstrategyandframeworkthatfocusesonconnectivityandcooperationamongcountriesprimarilyinEurasia,whichconsistsoftwomaincomponents,theland-basedSilkRoadEconomicBelt(SREB)andoceangoingMaritimeSilkRoad(MSR).OBORaimsatborrowtheancientsymbolsilkroad,andcarrythebannerofpeacefuldevelopment,activelydevelopaneconomicpartnershipwithcountriesalongtheSilkRoadandregions,tobuildcommunityofinterest,fatecommunityandcommunityinresponsibilityofpoliticalmutualtrust,economicintegration,culturallytolerant,3,Countriesandregionsalongthe“OneBelt,OneRoad”datasuchaspopulationandeconomicscale,4,Developregionaleconomy,Absorbexcesscapacity,Reduceforeignexchangereserve,WhydoChinawanttocarryoutOneBelt,OneRoad?Forthenation,5,1,2,3,Drivecapacityoutputbycapitaloutput,Strengtheninternationalcooperation,Reversebalanceofpaymentssituation,Fortheword:,6,InfrastructureNetworks,7,Sourcesoffunds,AIIBisaproposedinternationalfinancialinstitutionwhichisfocusedonsupportinginfrastructureconstructionintheAsia-Pacificregion.,SCODBismultilateraldevelopmentfinanceinstitution,anditexpandcooperationinthesettlementinlocalcurrenciesandpromotetheeconomyandtradecommunionofregionsbyjointcontributionandjointbenefit,NewDevelopmentBankisaproposedinternationalfinancialinstitutionwhichisfocusedonsupportinginfrastructureconstructionofthese5BRICSandotherdevelopingcountries.,SIFisastateownedinvestmentfundoftheChinesegovernmenttofosterincreasedinvestmentincountriesalongtheOneBelt,OneRoad,aneconomicdevelopmentinitiativeprimarilycoveringEurasia.,8,ThefivemajorCo-operation,policycoordination,unimpededtrade,financialintegration,facilitiesconnectivity,people-to-peoplebonds,importantcontent,priorityareas,importantsupporting,importantguarantee,socialfoundation,9,TheBack-upForceofOBOR,1,2,3,4,5,6,landsilkroad,maritimeSilkRoad,1.High-speeddiplomacy2.ShanghaiCooperationOrganizationDevelopmentBank3.SilkRoadfund,4.AsianInfrastructureInvestmentBank(AIIB)5.Nucleardiplomacy6.BRICSBank,10,OBOR“construction”,RelationshipbetweenOBORandAIIB,TheimplementationofOneBeltandOneRoadstratgyrequiresalargenumberofinvestmentfromfinancialinstitutions,includingAIIB.,TheaidprogramofAIIB,whichtargetstheconstructionofinfrastructureinAsian-Pacificregion,overlapswithOBORstrategy.,11,12,OvercapacityProblem,13,OvercapacityProblem,1.OBORopensupnewexportmarketstocompetewithAmericaandJapan.2.Ithelpsemergingmarketcountriesandlessdevelopedcountriesininfrastructureconstruction,usingthesufficientforeignexchangereservestosolvetheovercapacityproblem,14,ResourcesAquisition,Chinasoilandgasresourcesarehighlydependentonoverseasmineralresources.OBORwillbuildsomeeffectivechannelstogetresouces.Itcontributestotheresourcesdiversification.,15,NationalSecurity,Theindustryandinfrastructureofcoastalregion,westernareaandcentralareaneedtobeprotectedfromexternalconcealedthreats.OBORwillimprovethecapabilitytostrengthenthenationalsecurityatriskofconflict.,16,TradeInitiative,OBORwillmakeChinahaveagreatersayinglobalmarketandregionaleconomy.,17,TransportationNetwork,Withbuildingatransportationnetworkintheneighboringarea,OBORwillpromotetheexporttradeandmobilizationofresouces.,18,ChinasRegionsinPursuingOpening-Up,19,ChinainAction,High-levelguidanceandfacilitation.Signingcooperationframework.Promotingprojectcooperation.Improvingpoliciesandmeasures.Boostingtheroleofcooperationplatforms.,20,21,Fund,22,23,24,25,-TheNetherlands,Germany,France,andothermanycountriesarefavorabletothefoundationofAIIB,NewsArticles,26,30.3%26%ofvotes,27,1.Fourfinancialplatformswillsolveexistingmoneyproblem.2.Fourfinancialplatformswillpromoteeconomicdevelopmentofnumerouscountries.3.Asthefourplatformspursueopen-doorpolicyenoughfinancialbackupforOBOR4.Fourfinancialplatformswillenablesustainableinvestment.5.Fourfinancialplatformswillenabledevelopingcountriestohaveloudervoice.AIIB1.AIIBwillplaythemainroleinOneBeltOneRoadproject.SolveinequalityproblemamongnationsbyredistributingresourcesandbetterinvestmentconditionsParticipationofprivatecompaniesaredesperateaswell,butastheinvestmentvehiclesaredevelopingcountries,privatecompaniesmaynotbeattractedtoinvestmentproposals.Toaddresstheissue,AIIBshouldguaranteesafeinvestmentandminimizedloss.,AssessmentofFinancialPlatform,28,ToChina:,1.Todigestovercapacity:Chinastotalcapacityutilizationdoesnotexceed65%,buttraditionalexportmarkethasopenedupinamorefullbyUnitedStatesandEurope.Meanwhile,thecountriesalongtherouteofOneBeltOneRoadlacktheinfrastructure,whojustneedcost-effectiveChineseconstructionbusiness.Chinaalsohastheexcessofforeignexchangeassets.Chinausesitshugeforeignexchangereservesaccumulatedasacapitaltoboostglobalgrowthandusesitsexportofcapitaltodigestitsexcesscapacity.2.Torevitalizethestockoftheeconomy:ThepromotionofOBORisconducivetotheexpansionofcross-borderuseofRMBintheperipheralregion,RMBpaymentsystemandtheutilizationofthehugeforeignexchangereserves.Aftertheabolishofgeographicrestrictions,ChinesedomesticenterprisesandcommercialbankscouldissueRMBbondsinoffshoretohelpthecirculationofRMBintheinternationalmarket.3.TostrengthenNationalSecurity:OBORcannotonlyhedgetheUS-ledTPP(Trans-Pacificrelationsagreement),TTIP(trans-Atlanticpartnerstonegotiate),whichattempttoisolateChina,butalsoprovidetheopportunityforChinatoparticipateinthedevelopmentofnewglobaltraderules.ShanghaiFTAShanghaiFreeTradeZone-InternationaltransferportChinasindustrialandinfrastructureareconcentratedincoastalareas,andthereisagreatpotentialfortheirdevelopmentincentralandwesternregions.,Significant,29,TotheWorld:,1.Neweconomicgrowthstimulation:Theglobaleconomicrecoveryisslowdownandmonetarypolicyindevelopedeconomiestrendstodifferentiation.Economiesofmanycountriesfacedifficultiesandneedaneweconomicgrowthenginetodrivetheworldeconomy.TheprojectionofOBORbenefitsChinaandmostcountries,becauseitseeksnewimpetustotheglobaleconomicrecoveryandmobilizesnewinvestmenttoachievethewin-winsituation.2.RegionalCollaboration:OBORbreakstheoriginaldevelopmentmodelofspotandblockpatternsandextendsverticallyandhorizontally,connectingAsia-PacificEconomicCircleintheeasttheEuropeaneconomiczoneinthewest,consideredastheworldslongest,mostdevelopmentpotentialeconomiccorridor.ThisstrategyhelpsthefurtherdeepenChina-ASEANcooperationandregionaleconomicintegration,buildingclosercommunity,andseekingthecoordinateddevelopmentinlinewiththestrategicinterestsofAsia-Pacific,Asia-Europeandmostmemberstates.,Significant,30,Challenges,OBORstrategyisaninevitableoutcomeofcurrentglobalstatus,anditalsofacesdifficulties.a.Specificdifficultiesduringtheimplementationofinvestmentprojects:1.Theenvironmentalimpactoflarge-scaleinvestment2.Changingrisksofforeignpolicy3.Breaking-inwithvariousforeigncountriescultures,customs,eveninstitutionsb.Howtodealwithrelationsofbigpowers:theUnitedStates,Russia,Indiac.Howtodealwithrelationsofsmallcountries:Scruples:NotThreaten-JointDevelopment,31,HotDiscussion,“NewNormal”TrapWorld:SinceSubprimeCrisis:the8thyearofloweconomicgrowth,lowinterestratesandexpandinggovernmentinterventionKeynesianstimulus:UnconventionalMonetaryPolicy(UMP):(Liquiditymanagement:short-termnominalinterestrate-centralbanksbalancesheetstructure,content)ZeroInterestRatePolicy(ZIRP)QuantitativeEasing(QE)NewNormal:aTrapofDebtandMoneyFinancialmarketbubbleSoaringdebts-economicslowdownAstheNewNormalTrapdeepens,therecanbeadesperatecallforbreakthroughChinapresentsnewglobalfinancial&economicparadigm,32,Ifbankloansstop,moneysupplyshrinksandcausesdeflationwhichmeanslessmoneytogoaround(liquiditycrisis),causingmassived
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